2010 Arkansas Code
Title 11 - Labor and Industrial Relations
Chapter 10 - Department of Workforce Services Law
Subchapter 5 - Benefits Generally
§ 11-10-532 - Claims -- Recovery.

11-10-532. Claims -- Recovery.

(a) (1) If the Director of the Department of Workforce Services finds that any person has made a false statement or misrepresentation of a material fact knowing it to be false or has knowingly failed to disclose a material fact and as a result of either action has received any amount as benefits under this chapter to which the person was not entitled, then the person shall be liable to repay the amount to the Unemployment Compensation Fund, or in lieu of requiring the repayment, the director may recover the amount of the overpayment by deductions from any future benefits payable to the person under this chapter.

(2) Once the overpayment becomes final pursuant to 11-10-527, the amount owed shall accrue interest at the rate of ten percent (10%) per annum beginning thirty (30) days after the date of the first billing statement.

(3) Beginning on July 1, 2001, a penalty of ten percent (10%) of the amount of the overpayment at the time the overpayment becomes final shall be assessed on all fraudulent overpayments. However, this penalty shall be waived in the event that the overpayment is repaid within one (1) year after the established date.

(b) (1) If the director finds that a person has received an amount as benefits under this chapter to which he or she was not entitled by reasons other than fraud, willful misrepresentation, or willful nondisclosure of facts, the person shall be liable to repay the amount to the fund.

(2) In lieu of requiring the repayment, the director may recover the amount by deduction of any future benefits payable to the person under this chapter unless the director finds that the overpayment was received without fault on the part of the recipient and that its recovery would be against equity and good conscience.

(c) Any person held liable to repay an amount to the fund shall be subject to having any state income tax refund to which he or she may be entitled intercepted pursuant to 26-36-301 et seq., as administered by the Revenue Division of the Department of Finance and Administration.

(d) (1) When an overpayment becomes final under 11-10-527, the director shall present a certificate of overpayment describing the amount owed by the claimant to the circuit clerk of the county where the claimant is domiciled.

(2) The circuit clerk shall enter the certificate of overpayment in the docket of the circuit court for judgments and decrees and note the time of the filing of the certificate.

(3) After entry by the circuit clerk, the certificate of overpayment shall have the force and effect of a judgment of the circuit court and shall bear interest at the rate of ten percent (10%) annually.

(4) Any interest or penalty payment recovered from an overpayment to a claimant shall be deposited into the Department of Workforce Services Special Fund.

(e) The federal income tax refund of a person held liable to repay an amount to the fund as the result of a finding of fraud shall be subject to interception pursuant to Pub. L. No. 110-328 and any rule or regulation adopted to implement that law.

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